Financial Services Provider Zopa Snaps Up DivideBuy

Zopa has bought buy now, pay later company DivideBuy. This is the first company it has bought with the $75 million it raised earlier this year.

DivideBuy lets merchants give their customers the option to pay without interest when they check out. Shoppers can pay for their purchases over the course of two to twelve months at more than 400 stores.

Under Zopa, DivideBuy will be able to give credit for purchases between £250 and £30,000.

The company plans to check all applications for credit and ability to pay, report debt positions to credit reference agencies, and give customers their own tools to help them pay down their debt.

The deal should bring in at least 20% more money for Zopa over the next few years.

Zopa CEO Jaidev Janardana says:

“This acquisition helps us bring to life BNPL 2.0, an evolution of BNPL which we believe delivers the easy, integrated product which customers love whilst also addressing some of the issues around affordability and responsible lending which have plagued the sector.”

Zopa got £75 million in funding in January, which it said would be used to speed up mergers and acquisitions in the first quarter of 2023.

The details of the deal with DivideBuy have not been made public.